Business Administration Punjab PMS Paper II 2009

PUNJAB PUBLIC SERVICE COMMISSION

COMBINED COMPETITIVIE EXAMINATION FOR RECRUITMENT TO
THE POSTS OF PROVINCIAL MANAGEMENT SERVICE. ETC. – 2009
PAPER ON : BUSINESS ADMINISTRATION (OPTIONAL)

PAPER II

TIME ALLOWED : THREE HOURS MAXIMUM MARKS: 100

Attempt in English Language only.

PART – I (MARKETING) 50 MARKS

1 Please explain the Marketing Role and enlist your activities for the first THREE HOURS after you woke up this morning. Briefly indicate how marketing affected your activities. (10)

2 Describe Internal & External Environment factors which must be taken into account to design an effective Marketing Programme. (10)

3 Explain Factors influencing Price Determination and how a firm’s pricing objective may influence the promotional program for a product. (10)

4 Briefly describe the following :- (5, 5, 5, 5)
(a) Product Mix and Promotional Mix (b) Market Segmentation (c) Distribution Channels (d) Branding and Packaging

PART – II (FINANCIAL MANAGEMENT) 50 MARKS

5 (i) Rub is considering a capital investment in new equipment. The estimated cash flows are as follows: (5 marks)
Year Cash flow ($)
0 (240,000)
1 80,000
2 120,000
3 70,000
4 40,000
5 20,000

The company cost of capital is 9%.

Required: Calculate the NPV of the project to assess whether it should be undertaken.

The following are discount factors for a 9% cost of capital.

Year Discount factor at 9%
0 1.000
1 0.917
2 0.842
3 0.772
4 0.708
5 0.650

5 (ii) (5 marks)

Calculate how much rupees exporters would receive or how much rupees importers would pay, ignoring the bank’s commission, in each of the following situations, if they were to exchange currency and rupees at the spot rate.

(a) A Pakistani exporter receives a payment from a Danish customer of 150,000 kronerss.

(b) A Pakistani importer buys goods from a Japanese supplier and pays I million yen.

Spot rates are as follows.

Bank sells (offer) Bank buys(bid)
Danish Kr/Rs 9.4340 9.5380
Japan Y/RS 203.650 205.781

6 State ten factors that should be taken into account when considering dividend policy? (10 marks)

7 Find the IRR of the project given below and state whether the project should be accepted if the company requires a minimum return of 17%.

TIME RUPEES (Rs)
0 Investment (14,000)
1 Receipts 1,200
2 * 1,410
3 * 1,875
4 * 1,150

8 (10 marks)

The January 1 cash balance of the Cowan Company is Rs. 5.000 Sales for the first four months of the year are expected to be as follows.

MONTHS RUPEES
January 65,000
February 54,000
March 66,000
April 63,000

On January 1. uncollected accounts for November and December of the previous year are RS 13.500 and 39,150, respectively. Collections from customers follow this pattern:

55% in the month of sale

30% in the month following the sale

13% in the second month following the sale and

2% uncollectible.

Materials purchases for December were Rs. t0, 000 Forecasts purchases for the corning year are.

January 12,500
February 16.500
March 13.000 and
April 14,000

Purchases are usually paid by the 10ffi of the month following the month of purchase. Other cash expenditures of 41.000 are forecasted for each month.

Required:

(1) Expected cash collection during February.

(2) Expected cash balance. February.

(3) Expected cash balance. February 28.

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